Orion Containers Inc. established standard costs for direct labor and direct materials for its 10-gallon plastic drums. The standards are: Budgeted Quantity Budgeted Price Component Direct labor 0.5 hours Direct materials 0.3 pounds $18.00 per hour $40.00 per pound In March, the company produced and sold 5,000 drums, using 2,600 direct labor hours at an average wage rate of $18.50 per hour. What is the direct manufacturing labor efficiency variance?

Orion Containers Inc. established standard costs for direct labor and direct materials for its 10-gallon plastic drums. The standards are: Budgeted Quantity Budgeted Price Component Direct labor 0.5 hours Direct materials 0.3 pounds $18.00 per hour $40.00 per pound In March, the company produced and sold 5,000 drums, using 2,600 direct labor hours at an average wage rate of $18.50 per hour. What is the direct manufacturing labor efficiency variance?

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter9: Evaluating Variances From Standard Costs

Section: Chapter Questions

Problem 3E: Salisbury Bottle Company manufactures plastic two-liter bottles for the beverage industry. The cost...

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